Richard C. Wilson is CEO of The Miami Family Office, a $500M AUM single family office. Richard is also the founder of Wilson Holding Company which employs over 30 professionals and produces over $10M a year in revenue through various operating businesses which include Billionaire Family Office and The Family Club, the largest membership-based family office association (FamilyOffices.com), along with holdings in the training, single family office management (SingleFamilyOffices.com), investment conference, search, data research, physical bullion, private equity (PrivatEquity.com), food, and energy industries.

Richard has spoken at over 150 conferences in 17 countries and has the #1 bestselling book in the family office industry, The Single Family Office: Creating, Operating, and Managing the Investments of a Single Family Office.  Richard has his undergraduate degree from Oregon State University, his M.B.A. from University of Portland, and has studied master’s level psychology through Harvard’s ALM program while previously residing in Boston.

Key Takeaways:

[2:20] Why you should care about what people worth $20+ million are doing with their money

[4:13] Some important terminology for dealing with family offices

[6:35] Looking back at some of the original family offices and the changes that have taken place since then

[10:49] Why there's a need for family offices

[14:11] How the middle class investor can take the framework of a family office and use it to fit their situation

[16:26] A key strategy you can take from family offices of the ultra-wealthy

[19:24] What sorts of holdings the family offices have

[22:56] Why the US is the haven for the ultra-wealthy

[26:26] Family offices, surprisingly, sometimes even go after distressed markets

[27:38] How you can find a family office to partner with in your deals

Websites Mentioned:

www.familyoffices.com

Reed Goossens is a real estate entrepreneur and founder of RSN Property Group. As a native Australian, Reed moved to the U.S to pursue his career. A qualified structural engineer and project manager, Reed has been involved with large-scale commercial construction and real estate development projects worth over $500 million since 2007; in Australia, the United Kingdom, and the U.S., including the London 2012 Olympic Games. After gaining valuable experience working in the engineering and construction industry, Reed decided to pursue his passion for real estate development and investing by starting RSN Property Group.

Throughout recent years Reed has developed his personal portfolio of solid cashflow investment properties. He believes now is the time to enhance and utilize the power of syndication investing to purchase apartment communities across the U.S. Reed’s commitment to the development of a structured approach to researching, acquiring and managing investments provides the basis for RSN's sound operating system.

Reed and Jason discuss the US market, finding the right deals, how things get done and more.

Key Takeaways:

[3:06] The differences between US and Australian real estate

[5:47] Reed's target properties

[7:48] The markets Reed likes and where he's invested

[10:26] Looking at the costs associated with large multi-family purchases

[13:54] Reed's 4 P's

[16:49] Where you're going to actually find the deals and what kind of talk should make you leery

[20:29] Reed's first deal under contract, how he lost the deal, and how it came back

[23:59] Getting money for your first loan

Websites Mentioned:

www.rsnpropertygroup.com
Investing In The U.S. - An Aussie's Guide to U.S. Real Estate

Jared Lichtin is a real estate investor and podcaster who previously worked as a lawyer for the oil and gas industry in Appalachia, near his home in Northwest Ohio. He realized the uncertainty of his work in titling and deeding properties for the volatile industry and decided to start flipping houses. His first few projects proved profitable so he has continued to buy and flip and then he podcasts about it. He shares insider information about what to watch out for when investing in the oil and gas industry.

Key Takeaways:

[2:37] Jared graduated law school, worked for a law firm for oil & gas industry and then started flipping houses after he noticed problems in the oil & gas market.

[7:14] How can you title, deed and will your oil & gas investments to others?

[13:30] Oil & gas investments are risky because there is nothing preventing the political landscape or environmental laws from changing.

[18:51] The exploration and production side of oil & gas companies is a seismic process which is technologically advanced and extremely volatile.

[24:21] It’s practically impossible to go wrong investing in real estate, if you do your homework.

[28:03] Summary and contact information for Jared.

Mentioned in This Episode:

Hartman Media

Flip Podcast

@JaredLichtin on Twitter

Why invest in Orlando, Florida? There are many reasons to invest in this judicial foreclosure state, including the influx of investments by major medical companies and large corporations like Lockheed Martin. There are also business basics to the State of Florida that make it a good place to invest. It offers asset protection, has no income tax for its residents, and is pro-business and pro-landlord. This hybrid market is ripe and once the real estate market corrects itself, investment properties will appreciate to their proper values.

Key Takeaways:

[2:24] It’s possible to buy real estate at a low price and become cash flow positive in the Orlando market. 

[6:50] Differences in price discovery, market clearing, and the foreclosure process can be attributed to judicial foreclosure states vs. non-judicial foreclosure states.

[11:21] Las Vegas may be a massively over speculated market. Its economy needs time to grow naturally.

[12:50] The state of Florida is a well-rounded city, which creates an environment for job growth. It’s time for the cyclical market to correct itself.

[19:36] The ease of enforcing contracts in Florida makes for a landlord-friendly environment.

[22:36] Our management team employs the idea of leverage and was built for investors by investors.

[23:53] A good management company works well with tenants while protecting their legal rights during an eviction.

Mentioned in This Episode:

JasonHartman.com

Brian, the local market specialist in Jacksonville, Florida shares encouraging data about the city’s job market, pro-business and pro-landlord stance. He also speaks to how the city meets his 5 fundamentals of investing which are jobs, population growth, affordability, desirability and a healthy supply and demand. The State of Florida offers asset protection and has no income tax for its residents.

Key Takeaways:

[2:11] Brian has 17 years of experience buying distressed housing and providing turnkey investments. 

[5:06] Why invest in Jacksonville? Consider these facts, figures and the 5 fundamentals.

[9:02] Jacksonville has received high rankings from the Business Journal, and Forbes has ranked Jacksonville #3 in the U.S. for employment.

[12:19] Every 8-10 years, real estate markets in the US go through the boom, slump, and recovery cycle.

[15:20] The humble single family home is a great device for mitigating risk, this is an example of a typical deal. 

[18:07] The City of Jacksonville has a pro-business and pro-landlord environment.

[20:11] The process of rehabbing involves a full renovation before the property is rented out.

[24:50] Jacksonville is currently a buyer’s market. Your investment must have a minimum of 3-5 years before planning your exit strategy.

Mentions:

Hartman Media

If you are using your buy and hold properties as short term rentals, through a company like Airbnb, you may be required to pay an additional 15.3% self-employment tax. Although it may seem like a gray area to you, the IRS considers it an active business and will take note of which schedule you are filing. Short term rentals require more of your labor and your time, which rarely gets accounted for when calculating costs. Considering all the aspects of short term rentals versus long-term buy and hold properties will shield you from future surprises.

Key Takeaways:

[2:34] Airbnb investors are running an active business, so the IRS imposes a 15.3% tax on the income.

[6:38] Maintenance on Airbnb properties are more time and labor intensive than a buy and hold property.

[13:18] Should Airbnb owners file a Schedule E or Schedule C at tax time?

[17:08] Are you able to depreciate the furnishings in an Airbnb rental and what is the De Minimis Safe Harbor?

[23:31] How many units do you need to qualify for the 500 material participation hours?

[27:11] Using segmented depreciation can help to depreciate your assets at a quicker rate.

[30:16] Cost segregation feasibility studies can run anywhere from $5,000 to $20,000.

[32:21] A home office is beneficial as it opens the door to many tax deductions.

Mentioned in This Episode:

Jason Hartman

reviews@jasonhartman.com

Hall CPA LLC

Technological changes may give real estate investors better tools to access previously unavailable markets, but no level of technology will ever replace a human’s need for shelter. As long as investors keep their eyes looking forward to the future and stay on top of the increasing number of research tools available, they will successfully build a diverse, long-term wealth strategy based upon single family home investment properties.

Jason and the Real Estate Guys take a break from their real estate conference speaking engagements, to discuss predictions for the future of the real estate investment market, the influx of tenants looking for rentals and how technology is changing investors’ ability to see beyond their own backyard and experience the benefit of geo-arbitration.

Key Takeaways:

[2:25] No matter what the statistics say, real estate investors have more tenants than ever before. 

[5:13] There will always be a need for single-family housing.

[7:02] The labor participation rate is the lowest it’s been over the last four decades but you can’t keep the U.S.A. down for long.

[9:41] Real estate investors sometimes miss megatrends but they need to change with the market. 

[12:18] How will technology change the way houses are built?

[15:00] Real estate is becoming a mature, less fragmented industry and when big money comes in, it will push prices up.

[18:44] Sophisticated investors use tools so they don’t get stuck investing in their backyard.

[21:23] Owning single family homes in 3-5 markets is a good diversification strategy

Mentioned in This Episode:

Hartman Media

Real Estate Guys

Dr. David E. Goldberg is an Emeritus Professor of Engineering at the University of Illinois and a pioneer in genetic algorithm. He is the founder and president of Big Beacon and he also hosts the radio show, Big Beacon Radio. He believes that the future is more optimistic than many people think it will be and that engineering is the key to enhancing education reform.

Key Takeaways:

[2:22] Evolutionary computation is the idea of combining Darwinian survival of the fittest and ideas from genetics.

[7:49] What impact does evolutionary engineering have on humans, the economy and the systems we use?

[11:53] The future can be more optimistic than what people assume it will turn out to be.

[14:06] Engineers used to be rock stars, just look at the ebb and flow of the popularity of historical engineers.

[16:14] After World War II, we turned engineers into ‘worker bees’ and now we want them to be charismatic leaders, like Steve Jobs.

[19:58] One of the interesting things we found when researching ‘A Whole New Engineer’ is that Asia may no longer be a breeding ground for engineers.

[24:12] Contact information for Dr. David Goldberg.

[25:10] Empower students with trust and they will find the courage to take the initiative which leads to real learning.

Mentioned in This Episode:

Jason Hartman

Big Beacon

A Whole New Engineer

NeighborhoodScout is an online data tool you can use to make real estate evaluations a breeze. It conducts simple searches, which serve up quality information. The information is used by government agencies, real estate investors and individuals alike. Today’s guest Dr. Andrew Schiller, the creator of the site, has a Ph.D. in geography, focusing in sustainable development.

Key Takeaways:

[1:54] Dr. Schiller has a Ph.D. in geography and uses data for projects on sustainable development.

[4:34] Predicting crime risk at the individual address level is possible with this software.

[5:55] The search engine component of NeighborhoodScout allows an investor to build their ideal neighborhood.

[7:35] The vacancy rate information that NeighborhoodScout delivers, is based on baseline nationwide statistics.

[13:55] Communities with good schools and low crime rates maintain their values during tough financial times.

[21:36] What is the tipping point for communities to ensure stable rentals?

[25:49] NeighborhoodScout’s information on crime is very telling. For example, Oakland, CA is both the most expensive and the most dangerous city in the U.S.

[31:00] Where can an investor buy a $100,000 house in a great neighborhood in the U.S.?

[36:17] How much is a subscription to NeighborhoodScout and how do I use it?

[37:13] The Federal Reserve and HUD use NeighborhoodScout for tax credit information. 

Mentions:

NeighborhoodScout

Managers of organizations typically inherit the team they are responsible for leading. Strategizing on how to effectively manage the new team can require an overwhelming amount of resources. Jason’s guest, Victor Prince, is the author of the book “Lead Inside the Box”; and he talks about a tool he created to categorize employees so that focus can be given to areas that will increase profitability without sacrificing efficiency. Victor also shares some techniques that can be used during the interview process to assist human resource departments with hiring the right individuals for the job.

Key Takeaways:

[2:20] The Leadership Matrix!

[5:00] Categorizing different types of employees.

[6:16] More often than not, leaders inherit an existing team.

[7:28] How to keep employees continuing to produce for your organization. 

[10:24] Managing your peers and succession planning.

[12:31] Know who you are talking to during the interview process.

[14:40] Insightful questions to ask during an interview.

[16:21] You want people to produce the results you ask of them.

[17:54] Filling the gap about the proper way to invest in people.

[18:54] Lack of leadership is the biggest issue in Washington, DC.

[20:15] Contact information for Victor.

Mentions:

Hartman Media

Victor Prince

Lead Inside the Box

Myers-Briggs